International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-5, January 2020
Change Management Strategy for Organization
in the Era of Industry 4.0
Lianna Sugandi, Yohannes Kurniawan, Lydiawati Kosasih Asalla
 At present, Indonesia has begun to work on the Industrial
Abstract: The Changes have survivalbenefits for an
organization. And with out any change, it can be ascertained that
the age of the organization will not last long. The Change sint end
to make the organization notastatic but remained dynamic in the
face of changing times. A leadershouldhave a vision and a change
in the strategy based on assumptions about future condition
sthatare expected to occur. The only leader who have the
personality, be havior, and the sense of power that are able to deal
with change. This paper analyzed the several literature study from
national journals and books in Indonesia and international
journals to see the change management concept from two
perspective. And the results showed the similarity research
funding from the researcher in Indonesia and the other countries
about change management strategies and challenges.
Keywords :Change management, organization, leader,
strategy, change.
I. INTRODUCTION
The era of the Industrial Revolution Phenomenon 4.0 is
definitely no longer in our ears, given the development of
technology and information that is happening all over the
world. The Industrial Revolution 4.0 is a phenomenon that
collaborates cyber technology and automation technology.
The concept of application is centered on the concept of
automation carried out by technology without asking for
human labor in the application process.
The benefits of technology in the industrial field, the
benefits can also be obtained by all levels of society. At
present, retrieving and transferring information can be easily
done anytime and anywhere through the internet network.
The Industrial Revolution 4.0 is a phenomenon that
collaborates cyber technology and automation technology.
The concept of application is centered on the concept of
automation carried out bytechnologywithoutasking for
humanlabor in theapplicationprocess.Thisaddsvalue to
theefficiency of the work environment where management
considers it vital and is needed by industry players. In
addition, time management will improve work quality and
production costs. A concrete example that can be taken from
the use of technology in the industrial field is the
bookkeeping and production process which can now be
easily accessed by anyone and at any time.
Revised Manuscript Received on January 15, 2020
* Correspondence Author
LiannaSugandi, Information Systems Department, School of
Information Systems, Bina Nusantara University, Jakarta, Indonesia, 11480.
Yohannes Kurniawan*, Information Systems Department, School of
Information Systems, Bina Nusantara University, Jakarta, Indonesia, 11480.
E-mail: ykurniawan@binus.edu
LydiawatiKosasihAsalla, Information Systems Department, School of
Information Systems, Bina Nusantara University, Jakarta, Indonesia, 11480.
Retrieval Number: D9108118419/2020©BEIESP
DOI:10.35940/ijrte.D9108.018520
Revolution 4.0, as seen from factories that have used the
internet network system to facilitate access to information on
internal access, employee supervision, and accounting. These
factories are often referred to as Smart Factory. To approve
this era of the Industrial Revolution 4.0 which is still
relatively new, special preparations are needed to support
industry players, we must be able to change plans quickly,
and how organizations can manage these changes requires
changing management strategies. This paper reviews the
literature from various sources to see how organizations can
survive in the industrial era
Mangkuprawira Sjafri [1] said that in a business
organization, the human element becomes a strategic thing in
the production process. How to control and manage them has
become an organizational problem. And today we know that
increasing change is inevitable in human life. As humans we
live in a worldfullofchange. The rapid changes in
theenvironment and technology force an organization to
adapt. Many organizations fail to adapt to change and are
eventually left behind by their competition and eventually the
organization dies. But on the other hand, large organizations
that want to move forward innovatively and are always able
to survive in facing changes, for example like BNI, Gudang
Garam and so on, can still exist even though they are more
than a hundred years old because the organization is able to
change to adapt.
There are difficult and even critical times in passing the
changing times and the organization becomes slow,
vulnerable, dull and lackluster, the organization must be
forced to change, if it does not change soon, such an
organization will be displaced and left far behind by its
competitors. The change management is an ongoing process
to serve every need for change and change always raises
concerns and expectations. One of the goals of change
management is to strive for the transformation process to take
place in a relatively fast time with minimal difficulties.
Meanwhile, according to Kasali R. [2] change management is
an important part of management and every leader is
measured by his ability to predict changes and make those
changes a potential. Heller [3] said that change is the most
important element of business management, in order to be
competitive in an increasingly aggressive market, the
organization and the people within it must be response
positive about change. According to Heller [3] ignore or
underestimate changes in trends, the organization will lose
money.
The concrete goals of change management for different
organizations may not be the same. However, the ethos of
change management is the same, namely, making the
organization more effective, efficient and responsive to
changes that occur within the
organization. The process of
change is usually done through
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 Change Management Strategy for Organization in the Era of Industry 4.0
the focus of organizational change and starting from the
business world who first realized the importance of change
both small and large organizations, both in the private or
public sectors. Most people struggle hard every day but often
fail due to change. Organizational change always involves
individual changes, and the response in responding to
change.
II. METHODS
The approach used for this article is limited to analysis based
on literature studies conducted from several sources national
(Indonesia) from books and journals and international
journals to see the change management concept from two
perspectives. The researchers want to explore the strategies
and challenges of change management in Indonesia compare
with the other countries.
III. RESULTS AND DISCUSSION
The factors that causes change are (1) technology, (2)
economic conditions, (3) global competition, (4) social and
demographic changes, (5) internal challenges. The changes
that occur in organizations are caused by various kinds of
external and internal forces. To be able to grow and survive,
organizations need to react and adapt to various forces.
Organizations that carry out innovation activities and on an
ongoing basis to improve products to meet changing
consumer demand and to deal with competitors.According to
Heller [3] changes in organizations can be dealt in three ways
namely (1) opposing, (2) following, (3) leading. The
opponents try not to change the impossible at this time, most
individuals or organizations who reject change will miss or
fail and will eventually follow the change. According to
Gunawan et al. [4] try to anticipate and lead safer changes
because the positive aspects of the changes are not as clear as
the negative aspects if there has been a change in perspective
and in developing strategies to enter and play in the business
then the trend of change organizations continue to increase in
frequency, speed, complexity and turmoil in the current
conditions and there seems to be no sign of decline.
The changes can have a negative impact but can also
have a positive impact on the organization. Change can affect
every aspect of organizational life by being proactive towards
change, that is, with the only way to master the future of the
organization. Internal structural changes in organizations and
markets are often rooted in broader changes in society,
economy and technology. There are many factors that can
make the need for action to change. Behavioral experts in the
company in their book Organizational Behavior written by
Kreiner Robert and Kinicki Angelo (2001) cited by Gunawan
et al [4] said that there are two forces which can encourage
the emergence of the need to make changes, namely: (1)
External forces, i.e. forces that arise from outside the
organization such as demographic characteristics (age of
education, skill level, gender, immigration etc. Technological
developments in market changes, social pressures and
politics, (2) Internal strengths, i.e. strengths that arise from
within the organization, such as human resource problems
(unmet needs, job dissatisfaction, productivity, work
motivation and so on), behavior and management decisions.
A. Change Management Failures
According to a survey from the Total Quality Management
(TQM) program from Schaffer and Thompson, Song
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Ciongwei quoted (2010) that 229 companies out of 300
electronics companies surveyed in the United States that 63%
of companies failed to achieve quality improvement and only
10% of this program it works. In Europe, especially the
United Kingdom, only 8% managed to make changes from
the two thirds of the top 500 companies.
B. Change Management Perspective
According to Soerjogoeritno [5] organizational change
can be done through a change management perspective. The
basis of the change management perspective there are four
main dimensions, namely: (1) relating to the concept of the
change process; (2) relates to context and uncertainty; (3)
relates to the concept of the content and scale of changes to be
made; (4) relates to the methods and strategies chosen in
managing change. the first dimension that arises regarding
the concept of the process of change. The concept of this
change process will provide an understanding of the process
of change that can be used as a basis in creating conditions so
that change is possible.
This second dimension concerns the context and
uncertainty related to the reasons for changing. If it is
associated with phenomena in a business environment that
continues to experience dynamic changes, questions like "Do
we have to change?" Become irrelevant to be raised. The
more important questions are "Where will the change
begin?", And "Will the change be for the better?", "When
should the change be made?" The answer to such questions
will be the basis for building a concept of activities and even
become the basis for managing change. A strong foundation
will be very urgent when it is understood that any change will
create uncertainty.
The third dimension is about the concept of the content
and scale of the changes to be made. This dimension requires
that change must be perceived as something down to earth
and accessible to thought. When the direction of change is
perceived as something high, what is created is strong
resistance to resist change. The direction of change that is not
in accordance with the goals and interests of the organization,
if change is perceived as something that makes members of
the organization uncomfortable with new positions and
conditions. The last dimension concerns the method or
strategy chosen in making changes. This dimension raises the
question of, "What strategies will be used?", And the
selection of appropriate methods and strategies is a
determining factor for the organization's success in making
changes.
C. The Power that Helps and Blocks Organizational
Change
The organizational change is an act of changing an
organization from the current conditions, to the future
conditions desired to increase its effectiveness. The
organizational environment is constantly changing and the
organization concerned needs to make changes in order to
survive.
D. When Changes Happen and When Done
Soerjogoeritno[5] explains that there are three factors
that drive organizational
change, namely: (1) the amount
of dissatisfaction with current
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 International Journal of Recent Technology and Engineering (IJRTE)
conditions. The greater the feeling of dissatisfaction with
current conditions, the more it will push to make changes; (2)
availability of desired alternatives. The more alternatives
available that are more feasible for updating current
conditions towards better conditions, the more profitable it is
to make changes; (3) with a plan to achieve the desired
alternative and if a good and systematic planning means more
opportunities for change.
Making changes does not need to wait until the moment
of crisis. The best changes are made when the company is
experiencing an increase. Because at that time the
organization had great self-confidence, sufficient cash (cash
inflow) and resilient resources. [2]. Rejection of change
(Resistance to Change) will appear very strong because the
organization is in a position of growth and organizational
members who are in a comfortable state. To create change
according to Kasali[2] organizations need great teams and
great players.
In other words, this concept suggests that organizations
do not wait until they are sick to make changes and recruit
new people who are more "fresh" if not forced so the
organization will sink. The change really requires sharp
analysis that will determine which points should take
precedence. Changes are made to continue life. And for that,
the implementation must be done conceptually,
systematically and gradually.
The condition for change quoted from Kasali[2] is the
existence of a learning process, and all people in the
organization are learning human beings. Organizations learn
through several stages, namely: (1) human resources are
selected through a very rigorous process; (2) the organization
is led by entrepreneurial leaders; (3) the learning process
takes place inside and outside the organization; (4) there are
linkages between the organization and circumstances outside
the organization; (5) there is a place to accumulate and
disseminate information; (6) there is recognition and reward
for success in individuals and groups; (7) there are no
conflicts at each level; (8) there is a clear process that makes
it possible for human resources to do things that are
innovative (innovative culture).
A number of factors need to be considered when
changes are made to an organization namely: (1) change
agents; (2) determining what needs to be changed; (3) types
of changes to be made; (4) individuals who are affected by
change; (5) evaluation of these changes. The organizational
process has two kinds of objectives, namely: (1) adjusting the
organization concerned to its environment and (2) changing
the behavior of employees.
E. Change Resistance
Many things are the reason why organizations prefer to
maintain the existing status quo and refuse to make changes.
Rejection of changes in things that often occur and are natural
according to Handokoet al [6] causes of rejection are:
personal interests, misunderstanding, norms, and the balance
of power and the existence of various differences such as
values and goals. There is a loss of comfort, power, security
money as well as identity and other benefits incurred.
With the change will cause rejection, other than that
misunderstanding as a result of misinformation makes people
reluctant to accept the change. This will happen if it is not
included in the discussion and preparation of the change plan
so that it does not know the objectives, processes and
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DOI:10.35940/ijrte.D9108.018520 3631
ISSN: 2277-3878, Volume-8 Issue-5, January 2020
potential consequences. Rules and norms that are firmly
entrenched will also prevent a change.Soerjogoeritno[5]
identified several causes for the rejection of change
including: (1) lack of understanding of the need to change;
(2) the environment is not conducive to change; (3) the
changes to be made are contrary to the basic values of the
organization, (4) errors in understanding changes and their
implications, (5) there is an understanding that the changes to
be made are not the best choice for the organization; (6) lack
of confidence for those who put forward a plan for change;
(7) injustice in carrying out the process of change.
The resistance to change can occur because of the need
for information and the impact of not making changes is
lacking. The form of rejection of change does not always
appear directly in a standard form. Rejection can be clearly
seen (explicit) and immediately for example, protesting,
threatening strikes, demonstrations and the like, or it can be
implicit and implicitly, for example, loyalty to the
organization decreases, work motivation decreases, work
errors increase absenteeism rates etc. other. Other things can
also be a problem such as the unavailability of configuration
information in up-to-date infrastructure.
According to Gunawan et. al [4] one of the causes of
failure experienced by organizations in making changes is the
formation of a coalition that is strong enough among people
who have the authority and ability to encourage change.
There are eight levels in the process of change, namely: (1)
Building a sense of urgency. (2) Creating coalitions. (3)
formulating a strategic vision. (4) Communicate the vision of
change. (5) Empower overall action. (6) produces short-term
wins. (7) Consolidating results and driving greater change.
(8) Adding a new approach to culture. The eight levels are a
sequential whole but if the initial stages have been
implemented there is no need to repeat them.The main impact
of mistakes made in managing change is the emergence of
resistance from managers or employees related to changes
made by the organization. Resistance to change as an
emotional / behavioral reaction that arises as a response to the
emergence of threats, whether real or imaginary when
changes occur in routine work [4].
F. Forms of Change Strategy
According to Kasali[2] there are many terms that are
commonly used in change strategies. The terms include (1)
change management. (2) turnaround management. (3) crisis
management (4) reform (5) transformation (6) adaptive
strategy. The change strategy is also known through its
programs such as: (1) downsizing, (2) rightsizing, (3)
reengineering, (4) restructuring. Whereas Platt (2001) in
Kasali [2] said that change strategies can be divided into three
categories, namely: (1) transformational management (2)
turnaround management (3) crisis management. Management
transformation is usually carried out by healthy
organizations, or organizations that begin to perceive poor
signals.
The management turnaround is usually done when an
organization has begun to face rather complex problems and
involve broader parties. Whereas crisis management is
usually carried out if the company has entered a crisis period
when the company starts to run out of funds and energy
(reputation, motivation) quoted
from Kasali [2]. These three
strategies are closely related to
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 Change Management Strategy for Organization in the Era of Industry 4.0
each other namely when the organization enters a dangerous
stage it is not possible to do a management turnaround, at this
stage it must immediately implement crisis management in
the form of strategic rescue measures. This stage is often
referred to as "stop the bleeding", or stopping the bleeding in
the form of cash flow, good name and trust of all parties.
The biggest mistake usually starts with dismissing signs
of setback by only making mere operational changes.
Operational changes alone will certainly not be able to
produce strategic advances. All forms of change must be well
known by the change leader and need to be done conceptually
so that it does not stop halfway. Transformational change can
be likened to what Greiner [7] said as a change that has an
evolutionary nature, that is, changes that are made gradually
and require a long time in the long run. Transformation
strategies emerge as anticipation of change before the
demands for change occur. According to Kasali [2], there are
four types of changes in the Strategic Competitive Wedge,
namely: (1) technology, (2) products & services, (3) strategy
& structure, (4) culture. Changes in technology can change
the product processes, skills and knowledge base so that
production becomes more efficient the product is produced
more quickly.
G. The Key to Leaders' Success in Managing Change
The desire to change only to a handful of people in the
organization, change can be made if you have initiatives that
arise from the awareness of the importance of a change. A
trigger will begin and possibly lead the change process and
there will be an effort to get other members to make changes.
This allows change to be recognized as a necessity by all
members of the organization. But a desire will definitely lead
to rejection of change, if the desire and need to change is
strong then the refusal will be sought to be eliminated.By first
raising awareness and eliminating rejection, the process of
managing change will be more youthful. The next process is
by agreeing on the type of change needed, identifying and
developing a critical success factor, providing systems and
structures that ultimately lead to a strategy development.
The keys to success in managing organizational change
cited by Ulrich [8] are: (1) leading change which is a person
who sponsors the changes made by the organization; (2)
creating a share need, namely convincing individuals to think
together why they have to change and what needs are needed
to change and the possibility of rejection of rejection made;
(3) shaping a vision, namely overcoming obstacles to change;
(4) mobilizing commitment which is an identification to bind
and defend the interests of stakeholders that must be
considered in managing change; (5) changing systems and
structures, that is, using human resource and management
functions (staffing, development, appraisal, rewards,
organizational design, communication, systems, etc.) to
ensure that changes are built into the organizational
infrastructure; (6) monitoring process - setting benchmarks,
milestones and experiments that can measure and
demonstrate the process of change; (7) making change last
which gives confidence that changes occur through the
implementation of planning, thinking and commitment.
The presence of a change agent who will lead the process
of organizational change is the most essential factor in
determining whether or not an organization faces change.
Without the presence of a change leader, the change process
will not be organized and will lose direction.The presence of
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DOI:10.35940/ijrte.D9108.018520 3632
a change leader can arise from people inside and outside the
organization. Ulrich [8] said that the process of change in an
organization, a change leader must be able to become a
champion, namely: (1) must be able to spread his vision and
encourage individuals to achieve that vision; (2) must be able
to play a role not only as a knowledge worker but also as a
knowledge broker; (3) must be able to spread knowledge to
other members.
The Characteristics of an effective change leader
according to Moran and Brightman [9] are: (1) knowing the
picture of change as a whole and knowing its impact on
individuals in the organization and being able to encourage
members to adjust to new changes that occur are also able to
provide the necessary resources; (2) creating an environment
that allows individuals to try changes that occur, provide
encouragement, have experience in new ways that are
operated and able to break down existing cultures; (3) lead
the effort to change in every words and actions. Responsible
for implementing the performance process that has taken
place and identifying potential rejections; (4) shows a strong
dedication to change. Focus on results and processes, analyze
mistakes, determine why they occur and dare to try; (5)
interacting with individuals and groups within the
organization, able to explain who, what, when, where, when,
why and how the change occurred.
H. Managing Resistance to Change
There is no organization that can avoid change. Change
raises concerns because people fear economic losses,
inconvenience, uncertainty, and disconnect from common
social patterns. Almost every change in structure,
technology, people or strategy has the potential to disrupt
patterns of interaction that are already comfortable.
According to David Fred R.[10], resistance to change can be
considered the greatest threat to the successful
implementation of a strategy. People often reject the
implementation of strategies because they do not understand
what is happening, the implementation of strategies will
succeed depending on the ability of managers to develop
anorganizational climate that is conducive to change. Change
must be seen by managers and employees as opportunities
and not threats to employees.
Resistance to change can occur at any stage or at the level
of the strategy implementation process. According to David
Fred R. [10] to implement change there are three strategies
that are commonly used are (1) the strategy of forced change,
(2) the strategy of educational change, (3) the strategy of
rational change or for its own sake. Force change strategy
includes issuing orders and obligations to carry out the order;
the advantage of this strategy lies in its speed, but the
downside is low commitment and high resistance. Educative
change strategy is a strategy that presents information to
convince people of the need for change, the weakness of the
educational change strategy is that its implementation
becomes slow and difficult.
This type of strategy results in higher commitment and
less resistance than a forced change strategy. Finally, a
rational change strategy for self-interest (rational or
self-interest change strategy) is
a strategy that seeks to
convince individuals that
change is necessary for their
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 International Journal of Recent Technology and Engineering (IJRTE)
personal gain or interest. If this effort is successful, the
implementation of the strategy can be carried out with
relative ease. Changes to implementation are rare that offer
benefits for all parties. The rational change strategy is the
best, so we will look at this approach a little deeper. A
manager can increase the likelihood of successful
implementation of a strategy by carefully structuring change
efforts. Jack Duncan in David Fred R. [10] states that a
rational change strategy consists of four steps: (1) employees
are invited to participate in the change process and transition
details; (2) certain motivations or incentives for change are
needed; (3) communication is needed so that people can
understand the purpose or purpose of the change; (4) giving
feedback to everyone to find out about the progress achieved.
The change is a fact of life in the organization. The speed,
magnitude and direction of change vary from time to time
according to industry and organization. Strategists must try to
create a work environment where change is recognized as
necessary and good so that individuals more easily adapt to
change. The adopting a management approach to the decision
making process itself requires major changes in the
philosophy and operations of a company. Strategists can take
a number of positive actions to minimize manager and
employee resistance to change.
The organization need to plan and aware about the current
challenge in change management [11]. And they become
successful, if they can adaptation with the change in the
environment [12,13]. The other strategy that we have to
concerned in the organization is the linking between human
capital and the change management aspects [14], how to
integrate those aspect, that the most important things that we
have to aware and understand, because the involvement of all
stakeholders in organization is the key success factors in
organization, we need to increase involvement of them for
strategy formulation until implementation and control change
management in organization [15]. The variables needed to
consider for the organization about implementation of change
management in organization are the planning, time and
monitoring of changes [16]. The other things that we have to
concerned is the leadership aspect that will welp direction of
organizational changes [17, 18]. The organization need to
socialize the reasons of changes very clear to all stakeholders
in organization to eliminate misconception and conflicts
between employees and organization [19]. At the end the
culture is the other aspect that we have to care too [20].
IV. CONCLUSION
In order to survive in the face of global competition today,
an organization must make changes is no exception. In
implementing changes in the organization it is necessary to
have socialization that aims to describe the real changes to
each employee and be able to provide a mirror of change to
be seen by every employee about the true form of change in
order to avoid the confusion of employees in appreciating
behavior and culture at work and minimizing resistance that
is be the cause of failure in implementing changes in the
organization. Changes are made to have a positive impact on
the organization which tends to be an interesting challenge
for employees who can understand the direction of change in
responding to changes that occur.The organization needs to
conduct an evaluation of the implementation and assessment,
the impact caused to find out progress, provide feedback in
order to improve the instrument of organizational change.
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DOI:10.35940/ijrte.D9108.018520 3633
ISSN: 2277-3878, Volume-8 Issue-5, January 2020
Analysis of the critical success factors and factors that can
lead to failure in order to maintain the process of change in a
positive organization.
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Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
 Change Management Strategy for Organization in the Era of Industry 4.0

AUTHORS PROFILE

LiannaSugandi is a lecturer at Information Systems

Department, School of Information Systems, Bina
Nusantara University, Indonesia. She obtained
herbachelorand master degree in Information Systems.

Yohannes Kurniawan is a lecturer at the School of

Information Systems, Bina Nusantara University,
Indonesia. He obtained his doctoral degree in
Management Information Systems. His teaching
experience for undergraduate and graduate students are
in the field of knowledge management, user experience,
business analysis, IT innovation, information system analysis and design.

LydiawatiKosasihAsalla is a lecturer at Information

Systems Department, School of Information Systems,
Bina Nusantara University, Indonesia. She obtained
herbachelorand master degree in Information Systems.

Published By:
Retrieval Number: D9108118419/2020©BEIESP Blue Eyes Intelligence Engineering
DOI:10.35940/ijrte.D9108.018520 3634 & Sciences Publication